‘Euro generals’ face graft charges

MANILA, Philippines - The Office of the Ombudsman has ordered the filing of charges for multiple graft and technical malversation of public funds against nine retired and active officials of the Philippine National Police, called the “euro generals,” for their involvement in a 2008 scandal involving PNP funds.

Reversing a July 2011 decision that cleared all but one of the 17 respondents of criminal liability, Ombudsman Conchita Carpio-Morales approved the findings of a new panel of special prosecutors and graft investigators that found probable cause to indict the nine officers.

Among those who will face trial are retired senior police officials Eliseo dela Paz, then chief for comptrollership of the PNP; Emmanuel Carta, then deputy chief for operations; Ismael Rafanan, then chief of the directorial staff; Romeo Ricardo, then director for plans; German Doria, then director for human resources and doctrine development; and Jaime Caringal, then Region IX police director.

Also to be charged before the Sandiganbayan are retired chief superintendent Orlando Pestaño, and Senior Superintendents Samuel Rodriguez and Tomas Rentoy III, tagged as being behind the illegal disbursement of more than P10 million in PNP confidential and intelligence funds.

In an 86-page resolution dated March 26, 2013, the ombudsman approved the recommendations of the new panel of special investigators for the filing of nine criminal cases against the respondents.

The ombudsman also approved the dismissal of the charges filed against former Department of the Interior and Local Government (DILG) secretary Ronaldo Puno, former PNP chief Avelino Razon Jr., retired police director Silverio Alarco Jr., former police deputy director general Edgardo Acuña, retired chief superintendent Joel Maria Alvarez, Evita Caringal, and Cynthia Versoza for lack of probable cause.

All 17 retired and active PNP officials and private respondents were implicated in the Euro Generals controversy more than four years ago after most of them attended the 77th International Police (Interpol) general assembly in St. Petersburg, Russia in October 2008.

On their way home, Dela Paz and his wife Maria Fe were prevented from leaving the Sheremetyevo International Airport in Moscow after they were caught carrying 105,000 euros (P6.9 million) in cash that was way above the limit that can be carried out of the country.

As admitted by the new panel of special prosecutors and graft investigators who looked into the case for the second time, the large amount of cash involved in the foreign trip of the PNP officials triggered a congressional investigation.

But despite a report from Congress citing various irregularities in the use of public funds and violations of laws including graft and corruption and a recommendation for the prosecution of all those involved in the incident, the first investigating team from the Office of the Ombudsman that conducted a probe only ordered the filing of charges against Dela Paz and his wife, not for graft but for violation of Bangko Sentral ng Pilipinas (BSP) laws.

Prosecutor Jeofferson Toribio, handling the case filed before the anti-graft court, later asked Ombudsman Morales to consider calling for a review, believing that the findings of the first panel of investigators may have “overlooked key pieces of evidence in this case and proceeded to absolve all of the respondents except the Dela Paz spouses.”

In a Memorandum urging a reinvestigation, Toribio pointed out the illegal use of PNP confidential and intelligence funds caused injury to the government even after the money was returned nine months after the incident became public.

After being informed that the Sandiganbayan allowed the suspension of the proceedings in the cases filed against the Dela Paz couple to give way to a reinvestigation, Morales approved Toribio’s recommendations and included him in the new panel of special prosecutors and graft investigators that uncovered enough evidence to indict nine of the 17 original respondents.

Junking arguments of double jeopardy, the new investigating team said “we cannot just turn a blind eye on the evidence before us pointing to the irregularities and violations of law committed by the respondents.”

“If we do, then we are abdicating our sworn duty as protector of the people. We cannot afford to be indifferent… as if nothing happened,” the prosecutors said.

In their lengthy decision which will be the basis for the expected filing of the cases before the Sandiganbayan this week, the new investigating panel said Dela Paz, Rentoy, Pestaño and Rodriguez should be indicted for three counts of technical malversation and three counts of graft for the illegal release and use of PNP confidential and intelligence funds for the PNP delegation to the Interpol general assembly in Russia in 2008 that caused undue injury to government.

The Office of the Ombudsman said another graft charge should be filed against Dela Paz for “persuading, inducing or influencing another public officer to release and disburse” the money in violation of the General Appropriations Act and other laws, rules and regulations, and against Rentoy, Pestaño and Rodriguez “who allowed themselves to be persuaded, induced or influenced by respondent Dela Paz.”

Separate graft charges should also be lodged against Ricardo for recommending and certifying that PNP delegates Carta, Rafanan, Ricardo, Doria, Caringal and Dela Paz are qualified to travel to the Interpol event when they were already due to retire within one year from the trip.

The Office of the Ombudsman said such act violates provisions of the General Appropriations Act of 2008 that prohibits officials and employees of the DILG and Department of National Defense from traveling abroad to attend foreign trainings and seminars when they are due to retire within one year from the date of the trip.

Another graft case will be slapped against Carta, Rafanan, Ricardo, Doria, Caringal and Dela Paz for actually attending the activity despite being barred from doing so pursuant to the same rules.

Referring to Rodriguez, Rentoy, Pestaño and Dela Paz, the Ombudsman said “it is also undeniable that all of them knew that the amounts of P2,192,560 and P7,000,000 were taken from the intelligence/confidential funds of the PNP, specifically appropriated by law for the confidential, intelligence and counter-intelligence activities of the PNP for the year 2008. Yet, they still proceeded and/or allowed the use thereof for the travel and contingency expenses of the PNP delegation to Russia.”

“In fact, the return of the amount malversed strengthens the case of the prosecution, as the said act of returning the malversed funds is an implied admission that it was wrongfully taken by the accused,” the Ombudsman decision read.